Stockholm-based Doconomy, a fintech company that helps banks with tools to fight climate change and improve people’s financial health, announced that it has received €34M in B-round investment, one of Europe’s “largest funding rounds” in the sector.
The investment was co-led by UBS Next, the venture and innovation arm of UBS, and existing investor CommerzVentures, a VC firm that invests in fintech projects focused on climate.
S&P Global, a company that provides credit ratings and other financial services, joined as a new investor. Motive, PostFinance, and Tenity, existing investors, also participated in the round.
Managing Partner of CommerzVentures, says, “Doconomy empowers banks’ customers to make the best decisions, both for their finances and for the planet. Their solution couldn’t be timelier, as consumers around the world are looking for answers on how to build a sustainable future for themselves and their families.”
Bridging the gap between financial investment and environmental impact
As people increasingly want sustainable options, banks are expected to help them manage their environmental impact. Doconomy mentions in a statement, that research suggests most consumers want eco-friendly choices but feel banks aren’t doing enough to support them in this. Doconomy aims to bridge this gap.
Michael Baldinger, UBS’s Chief Sustainability Officer, says, “UBS Next’s investment in Doconomy underscores our focus on fostering innovation to provide the data and actionable insights our clients need to make informed choices about their investments and effect the change they want to see.”
Doconomy empowers banks with tools to help their customers manage their environmental footprints practically. The tools encourage eco-friendly choices while also supporting financial health.
This “first-of-its-kind” solution, combines behavioral science with advanced data analytics, thanks to Doconomy’s acquisition of Dreams Technology in February 2023.
Brief about Doconomy
Founded in 2018 by Mathias Wikström and Johan Pihl, Doconomy has served over 100 clients in 35 different markets and has established key partnerships with organisations such as the United Nations Framework Convention on Climate Change (UNFCCC), Mastercard, S&P Trucost and World Wildlife Fund (WWF).
The company offers a range of products including:
Impact Transactions: This tool calculates the carbon footprint of financial transactions using the Åland Index methodology, helping people understand the environmental impact of their spending.
Impact Finance: It’s a savings solution tied to personal goals and sustainable behavior. By linking financial goals with reducing emissions, it encourages more mindful consumption and investment decisions.
Impact Activity: Developed with the UNFCCC, this self-assessment tool helps individuals understand their overall environmental footprint.
Impact Education: This module provides resources and tools to help individuals adopt a more sustainable lifestyle by reducing their climate footprint.
How will the funds be utilised?
With this new funding, Doconomy plans to grow its presence in North America and improve its product range. The company also looks to get more people to engage and adopt to its tools.
CEO and co-founder of Doconomy, Mathias Wikström, says, “Doconomy works to help build a world where sustainability is the norm – and accessible to all. We want to make every transaction count by empowering everyone to play their part in tackling the climate crisis.”
“To empower banks to be global change makers we know we need to align planet, purpose and profit. Our unique solution empowers users to be more money and climate-conscious, while also boosting banks’ bottom line by helping them better understand and engage their customers for positive impact.”
“We could not achieve our goal for a more sustainable future without the invaluable support of our partners, and we are thrilled to welcome UBS and S&P Global on board with this mission. Together, we can drive positive climate impact on a truly global scale,” adds Wikström.
